Every day it becomes more and more obvious that there are two Australian wine industries out there. One is a relatively sophisticated and successful outfit dominated by four large players operating at all quality levels. It also encompasses all the high-grade successful small and medium-sized labels who have done their homework and whose wine is in constant demand. It sells more wine overseas than it does domestically and is the envy of the wine producing world. Its links into major overseas markets are steadily expanding and it is becoming an accepted part of the global beverage industry. While I might argue that it has become excessively smug over its own success, it is indeed earning profits, it is expanding into new markets and it is there for the long term. I refer to it as the legitimate Australian wine industry, and instead of facing an over-supply, it is actually deficient in fruit that satisfies its quality requirements. The other Australian wine industry is the one that people are whinging about. Generally consisting of new entrants to the game, it is typically under-capitalised, under-thought and under-managed. It grows more grapes than it can use, it produces finished wine in bottles that nobody wants and it is largely responsible for the over-supply that is pulling back prices and profits for all involved in wine over the next three years or so. It comprises those business that have become established simply to take advantage of taxation advantages, plus the plethora of wine companies that have begun as much through ignorance as accident. These businesses typically begin when somebody establishes a vineyard, without a thought in mind concerning the fate of their fruit. Next they discover that the real margins are made by those who add value by turning it into wine. So they build a winery and establish a brand without so much a thought as to sales and distribution. Next they wonder why nobody wants their wine. Then they become the industry’s latest basket case. My admiration for the legitimate wine industry is mirrored by my disrespect for what might be described as the illegitimate wine industry. I was exposed to a large cross-section of the illegitimate group recently while judging the National Cool Climate Wine Show at Bathurst. The judging panel that comprised Tim Knappstein, Ian McKenzie and myself awarded but a single gold medal to the 305-plus entrants at this show, plus a tiny smattering of silver and bronze. While the entrants did include some high-profile large and small wineries, the bulk were drawn from a national pool of aspirants stretching from one coast to the other. At this show fourteen out of twenty became a high score for me, which illustrated two things. Firstly, an enormous number of small wine makers must drink only their own wine, for only they could possibly consider it palatable. I actually gave two wines nine points out of twenty, a level significantly below fit for human consumption. Secondly, a score between 15.0 and 16.5 is indeed a worthy effort, even if it might lack the more obvious gloss and glamour associated with a higher rating. Those of you who ring my office complaining that your favourite wines only rate fifteen or sixteen please take note. Gimme a break or I’ll enter you as a judge in a regional Australian wine show. Then you’ll know exactly what I mean.
